Macroeconomics-All quizzes

An example of an intermediate good would be: A) The bread that goes into a sub sandwich that is sold by Quiznos B) The potato chips sold by Quiznos C) The soda pop sold by Quiznos D) A sub sandwich sold by Quiznos

A

Potential GDP refers to: A) The level of GDP attained when all firms are producing at capacity B) The difference between the highest level of real GDP per quarter and the lowest level of real GDP per quarter within any given year C) The extent to which real GDP is above or below nominal GDP D) The level of GDP attained by the country with the highest growth in the real GDP in a given year

A

The GDP deflator is the: A) Ratio of nominal GDP to real GDP multiplied by 100 B) Ratio of real GDP to nominal GDP multiplied by 100 C) Difference between real GDP and nominal GDP multiplied by 100 D) Difference between nominal GDP and real GDP divided by 100

A

The opportunity cost of taking a semester-long economics class is: A) Equal to the highest value of an alternative use of the time and money spent on the class B) The knowledge and enjoyment you receive from attending the class C) The value of time spent in the classroom D) The cost of tuition and fees only E) Zero because there is no admission charged if you are enrolled in the course

A

The purchase of a new house is included in: A) Investment expenditures B) Consumption expenditures C) Net exports D) Government purchases

A

Which of the following would cause both the equilibrium price and equilibrium quantity of oysters (assume that oysters are a normal good) to decrease: A) A decrease in consumer income B) An increase in consumer income C) An oil spill that sharply reduces oyster output D) A technological advancement in the production of oysters

A

At market equilibrium: A) Surpluses are greater than shortages B) Quantity demanded equals quantity supplied C) Shortages are greater than surpluses D) Demand equals supply

B

Gross domestic product is calculated by summing up: A) The total quantity of goods and services produced in the economy during a period of time B) The total market value of final goods and services produced in the economy during a period of time C) The total quantity of goods and services in the economy D) The total market value of goods and services in the economy

B

The labor force equals the number of people: A) In the working-age population B) Employed plus unemployed C) Unemployed D) Employed

B

The period between a business cycle peak and a business cycle trough is called: A) Recalculation B) Recession C) Expansion D) Diffusion

B

The purchase by a household in China of a CD produced in the United States is included in U.S. A) Consumption expenditures B) Net exports C) Government purchases D) Investment expenditures

B

What is the largest component of spending in the United States?: A) Government spending B) Consumption spending C) Net investment spending D) Investment spending

B

Hurricane Katrina damaged a large portion of oil refining and pipeline capacity in the Gulf coast states. In the market for gasoline, A) The supply curve shifted to the right resulting in an increase in the equilibrium B) The demand curve shifted to the right resulting in an increase in equilibrium C) The supply curve shifted to the left resulting in an increase in the equilibrium price D) The demand curve shifted to the left resulting in a decrease in the equilibrium price

C

In 2014, which component of GDP had a negative value? A) Consumption B) Government spending C) Net exports D) Investment

C

Structural unemployment is the result of: A) The search process of matching working with jobs B) A slowdown in the economy C) A persistent mismatch between the skills and characteristics of workers and the requirements of the jobs D) The ups and downs in inflation

C

The additional cost to a firm of producing one more unit of a good or service is the: A) Minimum cost B) Total cost C) Marginal cost D) Opportunity cost

C

The natural rate of unemployment is the amount of unemployment: A) That exists when the economy goes into recession B) That exists when the economy is in expansion C) Equal to frictional plus structural unemployment D) Associated with the business cycle

C

Cyclical unemployment is the result of: A) A persistent mismatch between the skills and characteristics of workers and the requirements of the jobs B) The ups and downs in inflation C) The search process of matching working with jobs D) A slowdown in the economy

D

During a business cycle expansion, total production _________________ and total employment________________: A) increases; decrease B) Decreases; decreases C) Decreases, increases D) Increases; increases

D

The production possibilities frontier shows the _________ combination of two products that can be produced in a particular time period with available resources: A) Minimum attainable B) Only C) Equitable D) Maxinum attainable

D

The unemployment rate equals the number of unemployed divided by the ________, all times 100: A) Working-age population B) Total population C) Number of employed D) Labor force

D

What is the difference between an "increase in demand" and an "increase in quantity demanded: A) There is no diffference between the two terms; they both refer to a movement downward along a given demand curve B) An "increase in demand" is represented by a movement along a given demand curve, while an "increase in quantity demanded" is represented by a rightward shift of the demand curve C) There is no difference between the two terms; they both refer to a shift of the demand curve D) An "increase in demand" is represented by a rightward shift of the demand curve while an "increase in quantity demanded" is represented by a movement along a given demand curve

D